TIDMALK
RNS Number : 8377C
Alkemy Capital Investments PLC
25 February 2022
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES,
CANADA, AUSTRALIA, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA, JAPAN
OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS
ANNOUNCEMENT.
THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS FOR
THE PURPOSES OF THE PROSPECTUS REGULATION RULES OF THE UK FINANCIAL
CONDUCT AUTHORITY ("FCA") OR OTHERWISE AND IS NOT AND DOES NOT
CONSTITUTE OR FORM PART OF, AND SHOULD NOT BE CONSTRUED AS, AN
OFFER OF SECURITIES FOR SALE IN ANY JURISDICTION, INCLUDING IN OR
INTO THE UNITED STATES, CANADA, AUSTRALIA, NEW ZEALAND, THE
REPUBLIC OF SOUTH AFRICA OR JAPAN.
Neither this announcement, nor anything contained herein, shall
form the basis of, or be relied upon in connection with, any offer
or commitment whatsoever in any jurisdiction. Investors should not
purchase any ordinary shares of GBP0.02 in the capital of the
Company ("Ordinary Shares") referred to in this announcement except
in compliance with applicable securities laws and regulations and
on the basis of information contained in the final prospectus (the
"Prospectus") including the risk factors set out therein, to be
published by Alkemy Capital Investments Plc (and any supplement
thereto), in connection with the proposed admission of its Ordinary
Shares on the standard listing segment of the Official List of the
FCA and admission to trading on the main market for listed
securities of London Stock Exchange plc ("LSE"). A copy of the
Prospectus is available for inspection on the Company's website at
www.alkemycapital.co.uk/investors/prospectus .
25 February 2022
Alkemy Capital Investments Plc
("Alkemy" or the "Company)
Reverse Takeover Transaction and Suspension of Listing
Formation of Operating Subsidiary to Develop the UK's First
Lithium Hydroxide Processing Facility in Teesside
Entry into an Exclusivity Agreement for Agreement for Lease
The Company is pleased to announce that it has entered into an
exclusivity agreement with Sembcorp Utilities (UK) Limited in
respect of its proposal to enter into a lease over a brownfields
site at Wilton International, a well-established chemical
engineering park located in Teesside, on which it intends to
construct a lithium hydroxide processing facility. It is also today
forming a wholly owned subsidiary company called Tees Valley
Lithium Limited ("TVL") to pursue this new strategy and intends to
finance and construct the processing facility through TVL.
This constitutes a Reverse Takeover under the Listing Rules and
therefore, at the request of the Company, the FCA has suspended the
listing of the Company's Ordinary Shares on the standard segment of
the Official List and trading of the Ordinary Shares on the main
Market of the LSE as of 8 a.m. today.
The Company proposes to seek readmission to the Official List,
standard segment and to trading on the Main Market of the LSE
("Readmission") and expects to publish the Prospectus in support of
its application to the Official List, standard segment shortly. It
is expected that the Company's Ordinary Shares will remain
suspended until Readmission.
HIGHLIGHTS
-- The Company is incorporating an operating subsidiary, Tees
Valley Lithium, which is being established to finance and construct
a lithium hydroxide processing facility in Teesside, UK.
-- The lithium hydroxide conversion market is currently
dominated by China, but there is a need for such processing
facilities in the western world to meet the demands of energy
storage markets.
-- The processing facility will aim to produce 24,000 tonnes per
annum of lithium hydroxide monohydrate to be sold in the energy
storage markets.
-- The Company is aiming to establish one of the world's most
sustainable producers of lithium hydroxide and to form a processing
hub for multiple potential sources of feedstock.
-- An exclusivity agreement, which appends a heads of terms, has
been entered into by the Company in respect of a proposed lease
over a brownfields site at Wilton International (the "Exclusivity
Agreement").
-- The Exclusivity Agreement affords the Company a six-month
period of exclusivity to prepare an option to lease and a lease,
which, if following satisfactory diligence of the proposed site,
shall be entered into by TVL.
LITHIUM HYDROXIDE MARKET
Alkemy has recognised that China dominates lithium conversion
capacity and increasingly is moving upstream to secure feedstock.
The market for lithium hydroxide has been well articulated by many
analysts with a consensus forecasting that it will go into deficit
causing prices to rise significantly over the medium term.
It is also expected that Europe and the US will continue to use
the higher performance NMC batteries which require a lithium
hydroxide feedstock.
LITHIUM HYDROXIDE FACILITY - TEES VALLEY
Alkemy is looking to develop, construct and operate one of the
world's most sustainable producers of lithium hydroxide with a view
to becoming a key supplier to the UK and European mobile energy
market.
Alkemy has identified a brownfields site in a well-established
chemical engineering park located in Teesside, a major UK
Freeport.
Alkemy has conducted initial high level due diligence into the
feasibility of establishing a Lithium Hydroxide Monohydrate ("LHM")
plant at the site which will aim to initially produce 24,000 tonnes
per annum from lithium feedstock from various sources, to be sold
to the UK and European mobile energy markets but will need
undertake a more formal feasibility study.
Whilst it would be possible to import and process a spodumene
concentrate with the attendant materials handling and waste
disposal issues it is viewed as only a near term option given the
carbon.
Alkemy is currently reviewing several methodologies for the
production of lithium hydroxide and it considers that processing
LHM by either causticisation or electrochemical processing, will
afford the Company with greater levels of output and are therefore
the most suitable for the Company.
The proposed development timeline is based on progressing
production by way of causticisation having achieved better results
in recent studies and is also based on knowledge of the accelerated
development timelines being achieved on other projects known to the
Directors.
The anticipated timeline is as follows:
-- Class 4 Capex and Opex study - completed in Q1 2022
-- FEED - completed in Q3 2022
-- Long lead time procurement - Q3 2022 to Q2 2023
-- Financing - Q4 2022
-- Main Construction, subject to financing - Q4 2022 to Q4 2023.
Alkemy is currently in discussions with several potential
providers of primary lithium sulphate feedstock and expects to make
further announcements on this in due course.
Alkemy is also considering various funding options for the
project including private equity, a structured bond and an
institutional equity component and will update the market on this
in due course. As it is intended to finance and operate the
facility via its operating subsidiary TVL, if this is achieved it
is anticipated that there will be no immediate dilution to Alkemy's
shareholders as part of the proposed financing process.
MANAGEMENT
The Company is currently interviewing a range of candidates for
the role of CEO and other senior positions. Once the CEO has been
appointed the intention is to recruit for key positions within the
executive team.
It is expected that a project delivery team will be recruited
for the construction phase and this team will work with the
engineering, procurement and construction management
contractor.
EXCLUSIVITY AGREEMENT
Under the terms agreed with the owner of the proposed site, in
consideration for a fee of GBP50,000, Alkemy has been granted the
exclusive right for six months to further evaluate the proposed
site and to negotiate and agree the forms of an agreement to lease
(which in effect extends the period of exclusivity and grants an
option to the Company to enter into a lease in respect of the
proposed site), the lease, a utilities agreement and a services
agreement, although Alkemy envisages that this along with the
necessary permitting will be concluded in advance of this
deadline.
The Company is also incorporating a subsidiary TVL which will
act as the group's operating company and will enter into the
agreement to lease and the lease.
Sam Quinn (Director) commented:
"We are delighted to have transitioned Alkemy into an operating
company now focussed on the exciting lithium downstream processing
sector to support the burgeoning electric vehicle and energy
storage markets. Although we are in the early stages, our aim is to
build the most sustainable significant producer of lithium
hydroxide, utilising the advantages of the UK's chemical processing
skills, infrastructure, green energy and legislation. We expect to
update the market shortly on further exciting developments as we
continue to advance the project."
SUSPENSION OF TRADING, PROSPECTUS AND READMISSION
The entry into the Exclusivity Agreement and incorporation of a
subsidiary constitutes a reverse takeover transaction as this is "a
fundamental change in the business of the Company" pursuant to
Listing Rule 5.6.4. As this constitutes a Reverse Takeover under
the Listing Rules therefore, at the request of the Company, the FCA
has suspended the Company's listing of the Company's Ordinary
Shares as set out above.
The Company has prepared a prospectus in connection with
Readmission which, subject to being approved by the FCA, is
expected to be published shortly and will then be published and
made available on the Company's website: www.alkemycapital.co.uk
and will be available on the National Storage Mechanism:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism . It is
expected that the Company's Ordinary Shares will remain suspended
until Readmission.
Subject to the approval and publication of the Prospectus, the
company is seeking Readmission of the Company's entire issued
ordinary share capital, consisting of 5,999,999 Ordinary Shares,
and it is expecting to be re-admitted to the Standard Listing
segment of the Official List of the FCA and to trading on the LSE's
Main Market for listed securities under the ticker symbol: ALK and
ISIN: GB00BMD6C023, in accordance with the following timetable:
Event Date
Entry into the Exclusivity Agreement 25 February 2022
-------------------------
Incorporation of operating subsidiary 25 February 2022
TVL
-------------------------
Payment of the exclusivity fee 25 February 2022
-------------------------
Suspension of the Company's listing 25 February 2022
-------------------------
Publication of the Prospectus On or around 25 February
2022
-------------------------
Readmission and lifting of the suspension 8.00am on or after 2
March 2022
-------------------------
Further announcements will be made in due course as required by
market rules.
A copy of this announcement will be available on the Company's
website www.alkemycapital.co.uk.
** Ends **
For further information, please contact:
Sam Quinn
Director, Alkemy Capital Investments Plc
Telephone: 0207 317 0636
Email: info@alkemycapital.co.uk
FORWARD LOOKING STATEMENT
This news release contains forward -- looking information. The
statements are based on reasonable assumptions and expectations of
management and Alkemy provides no assurance that actual events will
meet management's expectations. In certain cases, forward --
looking information may be identified by such terms as
"anticipates", "believes", "could", "estimates", "expects", "may",
"shall", "will", or "would". Although Alkemy believes the
expectations expressed in such forward -- looking statements are
based on reasonable assumptions, such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected. Mining exploration and development
is an inherently risky business. In addition, factors that could
cause actual events to differ materially from the forward-looking
information stated herein include any factors which affect
decisions to pursue mineral exploration on the relevant property
and the ultimate exercise of option rights, which may include
changes in market conditions, changes in metal prices, general
economic and political conditions, environmental risks, and
community and non-governmental actions. Such factors will also
affect whether Alkemy will ultimately receive the benefits
anticipated pursuant to relevant agreements. This list is not
exhaustive of the factors that may affect any of the forward --
looking statements. These and other factors should be considered
carefully and readers should not place undue reliance on
forward-looking information.
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END
UPDSEESWIEESEEE
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